FIESTA RESTAURANT GROUP, INC., 10-Q filed on 8/3/2016
Quarterly Report
Document and Entity Information
6 Months Ended
Jul. 3, 2016
Aug. 1, 2016
Entity Information [Line Items]
 
 
Entity Registrant Name
FIESTA RESTAURANT GROUP, INC. 
 
Entity Central Index Key
0001534992 
 
Current Fiscal Year End Date
--01-01 
 
Entity Filer Category
Large Accelerated Filer 
 
Document Type
10-Q 
 
Document Period End Date
Jul. 03, 2016 
 
Document Fiscal Year Focus
2016 
 
Document Fiscal Period Focus
Q2 
 
Amendment Flag
false 
 
Entity Common Stock, Shares Outstanding
 
26,921,404 
Consolidated Balance Sheets (Unaudited) (USD $)
In Thousands, unless otherwise specified
Jul. 3, 2016
Jan. 3, 2016
Current assets:
 
 
Cash
$ 4,809 
$ 5,281 
Trade receivables
10,167 
9,217 
Inventories
2,648 
2,910 
Prepaid rent
3,388 
3,163 
Income tax receivable
1,829 
7,448 
Prepaid expenses and other current assets
3,783 
3,219 
Total current assets
26,624 
31,238 
Property and equipment, net
274,960 
248,992 
Goodwill
123,484 
123,484 
Deferred income taxes
8,497 
8,497 
Deferred financing costs, net
764 
918 
Other assets
2,546 
2,516 
Total assets
436,875 
415,645 
Current liabilities:
 
 
Current portion of long-term debt
55 
69 
Accounts payable
19,022 
12,405 
Accrued payroll, related taxes and benefits
12,493 
15,614 
Accrued real estate taxes
5,191 
6,121 
Other liabilities
10,404 
12,096 
Total current liabilities
47,165 
46,305 
Long-term debt, net of current portion
69,498 
72,612 
Lease financing obligations
1,663 
1,663 
Deferred income--sale-leaseback of real estate
29,036 
30,086 
Other liabilities
24,532 
20,997 
Total liabilities
171,894 
171,663 
Commitments and contingencies
   
   
Stockholders' equity:
 
 
Common stock, par value $.01; authorized 100,000,000 shares, issued 26,921,449 and 26,829,220 shares, respectively, and outstanding 26,687,168 and 26,571,602 shares, respectively.
267 
266 
Additional paid-in capital
161,911 
159,724 
Retained earnings
102,803 
83,992 
Total stockholders' equity
264,981 
243,982 
Total liabilities and stockholders' equity
$ 436,875 
$ 415,645 
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)
Jul. 3, 2016
Jan. 3, 2016
Statement of Financial Position [Abstract]
 
 
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, shares authorized
100,000,000 
100,000,000 
Common stock, shares issued
26,921,449 
26,829,220 
Common stock, shares outstanding
26,687,168 
26,571,602 
Consolidated Statements of Operations (Unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 3, 2016
Jun. 28, 2015
Jul. 3, 2016
Jun. 28, 2015
Revenues:
 
 
 
 
Restaurant sales
$ 180,835 
$ 171,268 
$ 356,774 
$ 334,326 
Franchise royalty revenues and fees
697 
632 
1,435 
1,449 
Total revenues
181,532 
171,900 
358,209 
335,775 
Costs and expenses:
 
 
 
 
Cost of sales
54,607 
54,223 
108,657 
105,346 
Restaurant wages and related expenses (including stock-based compensation expense of $40, $40, $76, and $107, respectively)
46,981 1
42,383 1
92,033 1
82,973 1
Restaurant rent expense
9,113 
8,048 
18,034 
16,055 
Other restaurant operating expenses
24,263 
21,362 
46,651 
41,221 
Advertising expense
7,006 
5,144 
14,001 
10,698 
General and administrative (including stock-based compensation expense of $1,218, $1,055, $2,193, and $1,929, respectively)
14,253 2
13,624 2
28,101 2
27,388 2
Depreciation and amortization
8,625 
7,401 
16,961 
14,248 
Pre-opening costs
2,016 
1,211 
3,198 
2,162 
Impairment and other lease charges
82 
94 
94 
Other expense (income)
10 
(142)
(238)
(514)
Total operating expenses
166,956 
153,254 
327,492 
299,671 
Income from operations
14,576 
18,646 
30,717 
36,104 
Interest expense
535 
414 
1,093 
852 
Income before income taxes
14,041 
18,232 
29,624 
35,252 
Provision for income taxes
5,125 
6,983 
10,813 
13,502 
Net income
$ 8,916 
$ 11,249 
$ 18,811 
$ 21,750 
Basic net income per share
$ 0.33 
$ 0.42 
$ 0.70 
$ 0.81 
Diluted net income per share
$ 0.33 
$ 0.42 
$ 0.70 
$ 0.81 
Basic weighted average common shares outstanding
26,654,280 
26,490,673 
26,629,999 
26,462,919 
Diluted weighted average common shares outstanding
26,660,269 
26,497,658 
26,636,145 
26,470,130 
Consolidated Statements of Operations (Unaudited) (Parenthetical) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 3, 2016
Jun. 28, 2015
Jul. 3, 2016
Jun. 28, 2015
Stock-based compensation
$ 1,258 
$ 1,095 
$ 2,269 
$ 2,036 
Restaurant Wages And Related Expenses [Member]
 
 
 
 
Stock-based compensation
40 
40 
76 
107 
General and Administrative Expense [Member]
 
 
 
 
Stock-based compensation
$ 1,218 
$ 1,055 
$ 2,193 
$ 1,929 
Consolidated Statement of Changes in Stockholders' Equity Statement (USD $)
In Thousands, except Share data, unless otherwise specified
Total
USD ($)
Number of Common Stock Shares [Member]
Common Stock [Member]
USD ($)
Additional Paid-in Capital [Member]
USD ($)
Retained Earnings [Member]
USD ($)
Beginning balance at Dec. 28, 2014
$ 199,587 
 
$ 264 
$ 153,867 
$ 45,456 
Beginning shares at Dec. 28, 2014
 
26,358,448 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
Stock-based compensation
2,036 
 
 
2,036 
 
Vesting of restricted shares
 
173,031 
 
 
 
Vesting of restricted shares
 
 
 
 
Vesting of restricted shares and related tax benefit
1,016 
 
 
1,015 
 
Net income
21,750 
 
 
 
21,750 
Ending balance at Jun. 28, 2015
224,389 
 
265 
156,918 
67,206 
Ending shares at Jun. 28, 2015
 
26,531,479 
 
 
 
Beginning balance at Jan. 03, 2016
243,982 
 
266 
159,724 
83,992 
Beginning shares at Jan. 03, 2016
26,571,602 
26,571,602 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
Stock-based compensation
2,269 
 
 
2,269 
 
Vesting of restricted shares
 
115,566 
 
 
 
Vesting of restricted shares
 
 
 
 
Adjustments to Additional Paid in Capital, Income Tax Deficiency from Share-based Compensation
(81)
 
 
(82)
 
Net income
18,811 
 
 
 
18,811 
Ending balance at Jul. 03, 2016
$ 264,981 
 
$ 267 
$ 161,911 
$ 102,803 
Ending shares at Jul. 03, 2016
26,687,168 
26,687,168 
 
 
 
Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jul. 3, 2016
Jun. 28, 2015
Cash flows from operating activities:
 
 
Net income
$ 18,811 
$ 21,750 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 
Loss (gain) on disposals of property and equipment
25 
(271)
Stock-based compensation
2,269 
2,036 
Impairment and other lease charges
94 
94 
Depreciation and amortization
16,961 
14,248 
Amortization of deferred financing costs
154 
154 
Amortization of deferred gains from sale-leaseback transactions
(1,791)
(1,812)
Changes in other operating assets and liabilities
7,046 
(1,997)
Net cash provided by (used in) operating activities
43,569 
34,202 
Capital expenditures:
 
 
New restaurant development
(35,760)
(33,462)
Restaurant remodeling
(486)
(1,526)
Other restaurant capital expenditures
(1,995)
(2,679)
Corporate and restaurant information systems
(3,997)
(2,233)
Total capital expenditures
42,238 
39,900 
Properties purchased for sale-leaseback
(2,663)
Proceeds from sale-leaseback transactions
3,642 
Proceeds from sales of other properties
226 
139 
Net cash used in investing activities
(41,033)
(39,761)
Cash flows from financing activities:
 
 
Excess tax benefit from vesting of restricted shares
120 
1,016 
Borrowings on revolving credit facility
9,400 
16,000 
Repayments on revolving credit facility
(12,500)
(11,000)
Principal payments on capital leases
(28)
(25)
Net cash provided by (used in) fnancing activities
(3,008)
5,991 
Net increase (decrease) in cash
(472)
432 
Cash, beginning of period
5,281 
5,087 
Cash, end of period
4,809 
5,519 
Supplemental disclosures:
 
 
Interest paid on long-term debt
921 
819 
Interest paid on lease financing obligations
71 
70 
Accruals for capital expenditures
6,093 
4,813 
Income tax payments, net
$ 5,275 
$ 9,270 
Basis of Presentation
Basis of Presentation
Basis of Presentation
Business Description. Fiesta Restaurant Group, Inc. ("Fiesta Restaurant Group" or "Fiesta") owns, operates and franchises two fast-casual restaurant brands through its wholly-owned subsidiaries Pollo Operations, Inc., and its subsidiaries, and Pollo Franchise, Inc., (collectively “Pollo Tropical”) and Taco Cabana, Inc. and its subsidiaries (collectively “Taco Cabana”). Unless the context otherwise requires, Fiesta and its subsidiaries, Pollo Tropical and Taco Cabana, are collectively referred to as the “Company”. At July 3, 2016, the Company owned and operated 172 Pollo Tropical® restaurants and 164 Taco Cabana® restaurants. The Pollo Tropical restaurants include 122 located in Florida, 33 located in Texas, thirteen located in Georgia and four located in Tennessee. The Taco Cabana restaurants include 163 located in Texas and one located in Oklahoma. At July 3, 2016, the Company franchised a total of 37 Pollo Tropical restaurants and seven Taco Cabana restaurants. The franchised Pollo Tropical restaurants include 17 in Puerto Rico, one in Honduras, one in the Bahamas, three in Trinidad & Tobago, one in Venezuela, five in Panama, three in Guatemala, and six on college campuses and a hospital in Florida. The franchised Taco Cabana restaurants include five in New Mexico and two on college campuses in Texas.
Basis of Consolidation. The unaudited condensed consolidated financial statements presented herein reflect the consolidated financial position, results of operations and cash flows of Fiesta and its wholly-owned subsidiaries. All intercompany transactions have been eliminated in consolidation.
Fiscal Year. The Company uses a 52-53 week fiscal year ending on the Sunday closest to December 31. The fiscal year ended January 3, 2016 contained 53 weeks. The three and six months ended July 3, 2016 and June 28, 2015 each contained thirteen and twenty-six weeks, respectively. The fiscal year ending January 1, 2017 will contain 52 weeks.
Basis of Presentation. The accompanying unaudited condensed consolidated financial statements for the three and six months ended July 3, 2016 and June 28, 2015 have been prepared without an audit pursuant to the rules and regulations of the Securities and Exchange Commission and do not include certain information and footnotes required by U.S. Generally Accepted Accounting Principles ("GAAP") for complete financial statements. In the opinion of management, all normal and recurring adjustments considered necessary for a fair presentation of such financial statements have been included. The results of operations for the three and six months ended July 3, 2016 and June 28, 2015 are not necessarily indicative of the results to be expected for the full year.
These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended January 3, 2016 included in the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 2016. The January 3, 2016 balance sheet data is derived from those audited financial statements.
Fair Value of Financial Instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. In determining fair value, the accounting standards establish a three level hierarchy for inputs used in measuring fair value as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities; Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities; and Level 3 inputs are unobservable and reflect our own assumptions. The following methods were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate the fair value:
Current Assets and Liabilities. The carrying values reported on the balance sheet of cash, accounts receivable and accounts payable approximate fair value because of the short maturity of those financial instruments.
Revolving Credit Borrowings. The fair value of outstanding revolving credit borrowings under the Company's senior credit facility, which is considered Level 2, is based on current LIBOR rates. At July 3, 2016, the fair value and carrying value of the Company's senior credit facility was approximately $67.9 million.
Long-Lived Assets. The Company reviews its long-lived assets, principally property and equipment, for impairment at the restaurant level. In addition to considering management’s plans, known regulatory or governmental actions and damage due to acts of God (hurricanes, tornadoes, etc.), the Company considers a triggering event to have occurred related to a specific restaurant if the restaurant’s cash flows for the last twelve months are less than a minimum threshold or if consistent levels of cash flows for the remaining lease period are less than the carrying value of the restaurant’s assets. If an indicator of impairment exists for any of its assets, an estimate of undiscounted future cash flows over the life of the primary asset for each restaurant is compared to that long-lived asset’s carrying value. If the carrying value is greater than the undiscounted cash flow, the Company then determines the fair value of the asset and if an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value. For closed restaurant locations, the Company reviews the future minimum lease payments and related ancillary costs from the date of the restaurant closure to the end of the remaining lease term and records a lease charge for the lease liabilities to be incurred, net of any estimated sublease recoveries.
Use of Estimates. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements. Estimates also affect the reported amounts of expenses during the reporting periods. Significant items subject to such estimates and assumptions include: accrued occupancy costs, insurance liabilities, evaluation for impairment of goodwill and long-lived assets and lease accounting matters. Actual results could differ from those estimates.
Other Liabilities
Other Liabilities Disclosure [Text Block]
Other Liabilities
Other liabilities, current, consisted of the following:
 
July 3, 2016
 
January 3, 2016
Accrued workers' compensation and general liability claims
$
6,113

 
$
5,540

Sales and property taxes
1,905

 
3,031

Accrued occupancy costs
884

 
980

Other
1,502

 
2,545

 
$
10,404

 
$
12,096


Other liabilities, long-term, consisted of the following:
 
July 3, 2016
 
January 3, 2016
Accrued occupancy costs
$
16,915

 
$
15,349

Deferred compensation
1,687

 
1,665

Accrued workers' compensation and general liability claims
1,792

 
697

Other
4,138

 
3,286

 
$
24,532

 
$
20,997


Accrued occupancy costs include obligations pertaining to closed restaurant locations and accruals to expense operating lease rental payments on a straight-line basis over the lease term.
The following table presents the activity in the closed-store reserve, of which $1.0 million and $1.2 million are included in long-term accrued occupancy costs at July 3, 2016 and January 3, 2016, respectively, with the remainder in other current liabilities:
 
Six Months Ended July 3, 2016
 
Year Ended January 3, 2016
Balance, beginning of period
$
1,832

 
$
1,251

Provisions for restaurant closures

 
554

       Additional lease charges, net of (recoveries)
13

 
258

       Payments, net
(338
)
 
(358
)
Other adjustments
141

 
127

Balance, end of period
$
1,648

 
$
1,832

Stock-based Compensation
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
Stock-Based Compensation
During the six months ended July 3, 2016 and June 28, 2015, the Company granted 50,087 and 22,597 non-vested restricted shares, respectively, under the Fiesta Restaurant Group, Inc. 2012 Stock Incentive Plan (the "Fiesta Plan") to certain employees. These shares generally vest and become non-forfeitable over a four year vesting period. The weighted average fair value at grant date for these non-vested shares issued to employees during the six months ended July 3, 2016 and June 28, 2015 was $35.25 and $62.05, respectively.
During the six months ended July 3, 2016 and June 28, 2015, the Company granted 5,762 and 10,007 restricted stock units, respectively, under the Fiesta Plan to certain employees. The restricted stock units granted during the six months ended July 3, 2016 vest and become non-forfeitable at the end of a four year vesting period. The restricted stock units granted during the six months ended June 28, 2015 vest and become non-forfeitable over a four year vesting period or, for certain units, at the end of a four year vesting period. The weighted average fair value at grant date for these restricted stock units issued to employees during six months ended July 3, 2016 and June 28, 2015 was $35.25 and $62.05, respectively.
Also during the six months ended July 3, 2016 and June 28, 2015, the Company granted 33,691 and 17,501 non-vested restricted shares, respectively, and 33,691 and 17,501 restricted stock units, respectively, under the Fiesta Plan to certain employees subject to performance conditions. The non-vested restricted shares vest and become non-forfeitable over a four year vesting period subject to the attainment of performance conditions. The restricted stock units vest and become non-forfeitable at the end of a three year vesting period. The number of shares into which the restricted stock units convert is determined based on the attainment of certain performance conditions, and for the restricted stock units granted during the six months ended July 3, 2016 and June 28, 2015, ranges from no shares, if the minimum performance condition is not met, to 67,382 and 35,002 shares, respectively, if the maximum performance condition is met. The weighted average fair value at grant date for restricted non-vested shares and restricted stock units subject to performance conditions granted during the six months ended July 3, 2016 and June 28, 2015 was $35.25 and $65.01, respectively.
During the three months ended July 3, 2016 and June 28, 2015, the Company granted 14,081 and 8,698 non-vested restricted shares, respectively, to non-employee directors. The weighted average fair value at the grant date for restricted non-vested shares issued to directors during the three months ended July 3, 2016 and June 28, 2015, was $33.39 and $54.06, respectively. These shares vest and become non-forfeitable over a one year vesting period.
Stock-based compensation expense for the three and six months ended July 3, 2016 was $1.3 million and $2.3 million, respectively, and for the three and six months ended June 28, 2015 was $1.1 million and $2.0 million, respectively. As of July 3, 2016, the total unrecognized stock-based compensation expense relating to non-vested restricted shares and restricted stock units was approximately $8.4 million. At July 3, 2016, the remaining weighted average vesting period for non-vested restricted shares was 1.8 years and restricted stock units was 2.3 years.
A summary of all non-vested restricted shares and restricted stock units activity for the six months ended July 3, 2016 was as follows:
 
Non-Vested Shares
 
Restricted Stock Units
 
 
 
Weighted
 
 
 
Weighted
 
 
 
Average
 
 
 
Average
 
 
 
Grant Date
 
 
 
Grant Date
 
Shares
 
Price
 
Units
 
Price
Outstanding at January 3, 2016
257,618

 
$
30.69

 
42,840

 
$
56.46

Granted
97,859

 
34.98

 
39,453

 
35.25

Vested/Released
(115,327
)
 
26.19

 
(239
)
 
50.80

Forfeited
(5,869
)
 
36.79

 
(2,148
)
 
46.82

Outstanding at July 3, 2016
234,281

 
$
34.54

 
79,906

 
$
46.26


The fair value of the non-vested restricted shares and restricted stock units is based on the closing price on the date of grant.
Business Segment Information
Business Segment Information
The Company is engaged in the fast-casual restaurant industry, with two restaurant concepts (each of which is an operating segment): Pollo Tropical and Taco Cabana. Pollo Tropical restaurants offer a wide variety of freshly prepared Caribbean inspired food, while our Taco Cabana restaurants offer a broad selection of hand-made, freshly prepared and authentic Mexican food.
The accounting policies of each segment are the same as those described in the summary of significant accounting policies discussed in Note 1 to the Company's audited financial statements contained in the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 2016. The Company reports more than one measure of segment profit or loss to the chief operating decision maker for the purposes of allocating resources to the segments and assessing their performance. The primary measures of segment profit or loss used to assess performance and allocate resources are income before taxes and Adjusted EBITDA, which is defined as earnings attributable to the applicable operating segment before interest, income taxes, depreciation and amortization, impairment and other lease charges, stock-based compensation expense and other income and expense. Although the chief operating decision maker uses Adjusted EBITDA as a measure of segment profitability, in accordance with Accounting Standards Codification 280, Segment Reporting, the following table includes segment income before taxes, which is the measure of segment profit or loss determined in accordance with the measurement principles that are most consistent with the principles used in measuring the corresponding amounts in the consolidated financial statements.
The “Other” column includes corporate related items not allocated to reportable segments and consists primarily of corporate owned property and equipment, miscellaneous prepaid costs, capitalized costs associated with the issuance of indebtedness, corporate cash accounts, a current income tax receivable and advisory fees related to a proposed separation transaction.
Three Months Ended
 
Pollo Tropical
 
Taco Cabana
 
Other
 
Consolidated
July 3, 2016:
 
 
 
 
 
 
 
 
Restaurant sales
 
$
101,879

 
$
78,956

 
$

 
$
180,835

Franchise revenue
 
508

 
189

 

 
697

Cost of sales
 
32,266

 
22,341

 

 
54,607

Restaurant wages and related expenses (1)
 
23,980

 
23,001

 

 
46,981

Restaurant rent expense
 
4,825

 
4,288

 

 
9,113

Other restaurant operating expenses
 
13,701

 
10,562

 

 
24,263

Advertising expense
 
3,685

 
3,321

 

 
7,006

General and administrative expense (2)
 
8,843

 
5,363

 
47

 
14,253

Depreciation and amortization
 
5,428

 
3,197

 

 
8,625

Pre-opening costs
 
1,795

 
221

 

 
2,016

Impairment and other lease charges
 

 
82

 

 
82

Interest expense
 
228

 
307

 

 
535

Income before taxes
 
7,636

 
6,452

 
(47
)
 
14,041

Capital expenditures
 
20,468

 
3,633

 
1,346

 
25,447

June 28, 2015:
 
 
 
 
 
 
 
 
Restaurant sales
 
$
89,569

 
$
81,699

 
$

 
$
171,268

Franchise revenue
 
477

 
155

 

 
632

Cost of sales
 
30,094

 
24,129

 

 
54,223

Restaurant wages and related expenses (1)
 
19,251

 
23,132

 

 
42,383

Restaurant rent expense
 
3,820

 
4,228

 

 
8,048

Other restaurant operating expenses
 
10,893

 
10,469

 

 
21,362

Advertising expense
 
1,904

 
3,240

 

 
5,144

General and administrative expense (2)
 
7,651

 
5,973

 

 
13,624

Depreciation and amortization
 
4,340

 
3,061

 

 
7,401

Pre-opening costs
 
1,144

 
67

 

 
1,211

Impairment and other lease charges
 

 

 

 

Interest expense
 
176

 
238

 

 
414

Income before taxes
 
10,908

 
7,324

 

 
18,232

Capital expenditures
 
17,102

 
2,607

 
934

 
20,643


 
Six Months Ended
 
Pollo Tropical
 
Taco Cabana
 
Other
 
Consolidated
July 3, 2016:
 
 
 
 
 
 
 
 
Restaurant sales
 
$
200,785

 
$
155,989

 
$

 
$
356,774

Franchise revenue
 
1,085

 
350

 

 
1,435

Cost of sales
 
63,870

 
44,787

 

 
108,657

Restaurant wages and related expenses (1)
 
46,876

 
45,157

 

 
92,033

Restaurant rent expense
 
9,469

 
8,565

 

 
18,034

Other restaurant operating expenses
 
26,293

 
20,358

 

 
46,651

Advertising expense
 
7,447

 
6,554

 

 
14,001

General and administrative expense (2)
 
16,528

 
10,825

 
748

 
28,101

Depreciation and amortization
 
10,706

 
6,255

 

 
16,961

Pre-opening costs
 
2,909

 
289

 

 
3,198

Impairment and other lease charges
 

 
94

 

 
94

Interest expense
 
479

 
614

 

 
1,093

Income before taxes
 
17,305

 
13,067

 
(748
)
 
29,624

Capital expenditures
 
34,567

 
5,267

 
2,404

 
42,238

June 28, 2015:
 
 
 
 
 
 
 
 
Restaurant sales
 
$
176,458

 
$
157,868

 
$

 
$
334,326

Franchise revenue
 
1,158

 
291

 

 
1,449

Cost of sales
 
58,633

 
46,713

 

 
105,346

Restaurant wages and related expenses (1)
 
38,005

 
44,968

 

 
82,973

Restaurant rent expense
 
7,469

 
8,586

 

 
16,055

Other restaurant operating expenses
 
20,982

 
20,239

 

 
41,221

Advertising expense
 
4,262

 
6,436

 

 
10,698

General and administrative expense (2)
 
15,448

 
11,940

 

 
27,388

Depreciation and amortization
 
8,079

 
6,169

 

 
14,248

Pre-opening costs
 
2,014

 
148

 

 
2,162

Impairment and other lease charges
 

 
94

 

 
94

Interest expense
 
361

 
491

 

 
852

Income before taxes
 
22,498

 
12,754

 

 
35,252

Capital expenditures
 
32,144

 
5,658

 
2,098

 
39,900

Identifiable Assets:
 
 
 
 
 
 
 
 
July 3, 2016:
 
263,100

 
162,505

 
11,270

 
436,875

January 3, 2016
 
237,065

 
165,549

 
13,031

 
415,645


(1) Includes stock-based compensation expense of $40 and $76 for the three and six months ended July 3, 2016, respectively, and $40 and $107 for the three and six months ended June 28, 2015, respectively.
(2) Includes stock-based compensation expense of $1,218 and $2,193 for the three and six months ended July 3, 2016, respectively, and $1,055 and $1,929
for the three and six months ended June 28, 2015, respectively.
The Company is engaged in the fast-casual restaurant industry, with two restaurant concepts (each of which is an operating segment): Pollo Tropical and Taco Cabana. Pollo Tropical restaurants offer a wide variety of freshly prepared Caribbean inspired food, while our Taco Cabana restaurants offer a broad selection of hand-made, freshly prepared and authentic Mexican food.
The accounting policies of each segment are the same as those described in the summary of significant accounting policies discussed in Note 1 to the Company's audited financial statements contained in the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 2016. The Company reports more than one measure of segment profit or loss to the chief operating decision maker for the purposes of allocating resources to the segments and assessing their performance. The primary measures of segment profit or loss used to assess performance and allocate resources are income before taxes and Adjusted EBITDA, which is defined as earnings attributable to the applicable operating segment before interest, income taxes, depreciation and amortization, impairment and other lease charges, stock-based compensation expense and other income and expense. Although the chief operating decision maker uses Adjusted EBITDA as a measure of segment profitability, in accordance with Accounting Standards Codification 280, Segment Reporting, the following table includes segment income before taxes, which is the measure of segment profit or loss determined in accordance with the measurement principles that are most consistent with the principles used in measuring the corresponding amounts in the consolidated financial statements.
Net Income per Share
Net Income per Share
The Company computes basic net income per share by dividing net income applicable to common shares by the weighted average number of common shares outstanding during each period. Our non-vested restricted shares contain a non-forfeitable right to receive dividends on a one-to-one per share ratio to common shares and are thus considered participating securities. The impact of the participating securities is included in the computation of basic net income per share pursuant to the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings attributable to common shares and participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Net income per common share was computed by dividing undistributed earnings allocated to common stockholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and non-vested restricted shares based on the weighted average shares outstanding during the period.
Diluted earnings per share reflects the potential dilution that could occur if our restricted stock units were converted into common shares. Restricted stock units with performance conditions are only included in the diluted earnings per share calculation to the extent that performance conditions have been met at the measurement date. We compute diluted earnings per share by adjusting the basic weighted average number of common shares by the dilutive effect of the restricted stock units, determined using the treasury stock method.
Weighted average outstanding restricted stock units totaling 13,990 and 10,698 shares for the three and six months ended July 3, 2016, respectively, and 9,391 and 4,696 shares for the three and six months ended June 28, 2015, respectively, were not included in the computation of diluted earnings per share because to do so would have been antidilutive.
The computation of basic and diluted net income per share is as follows:
 
 
Three Months Ended
 
Six Months Ended
 
  
July 3, 2016
 
June 28, 2015
 
July 3, 2016
 
June 28, 2015
Basic and diluted net income per share:
  
 
 
 
 
 
 
 
Net income
  
$
8,916

 
$
11,249

 
$
18,811

 
$
21,750

Less: income allocated to participating securities
  
(89
)
 
(142
)
 
(183
)
 
(285
)
Net income available to common stockholders
  
$
8,827

 
$
11,107

 
$
18,628

 
$
21,465

Weighted average common shares, basic
 
26,654,280

 
26,490,673

 
26,629,999

 
26,462,919

Restricted stock units
 
5,989

 
6,985

 
6,146

 
7,211

Weighted average common shares, diluted
  
26,660,269

 
26,497,658

 
26,636,145

 
26,470,130

 
 
 
 
 
 
 
 
 
Basic net income per common share
  
$
0.33

 
$
0.42

 
$
0.70

 
$
0.81

Diluted net income per common share
 
$
0.33

 
$
0.42

 
$
0.70

 
$
0.81

The Company computes basic net income per share by dividing net income applicable to common shares by the weighted average number of common shares outstanding during each period. Our non-vested restricted shares contain a non-forfeitable right to receive dividends on a one-to-one per share ratio to common shares and are thus considered participating securities. The impact of the participating securities is included in the computation of basic net income per share pursuant to the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings attributable to common shares and participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Net income per common share was computed by dividing undistributed earnings allocated to common stockholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and non-vested restricted shares based on the weighted average shares outstanding during the period.
Commitments and Contingencies
Commitments Disclosure [Text Block]
Commitments and Contingencies
Lease Assignments. Taco Cabana has assigned three leases on properties where it no longer operates restaurants with lease terms expiring on various dates through 2029 to various parties. The assignees are responsible for making the payments under these leases. The Company is a guarantor under one of these leases and it remains secondarily liable as a surety with respect to two of these leases. The maximum potential liability for future rental payments the Company could be required to make under these leases at July 3, 2016 was $1.8 million. The Company could also be obligated to pay property taxes and other lease related costs. The obligations under these leases will generally continue to decrease over time as the operating leases expire. The Company does not believe it is probable that it would be ultimately responsible for the obligations under these leases.
Legal Matters. The Company is a party to legal proceedings incidental to the conduct of business, including the matter
described below. The Company records accruals for outstanding legal matters when it believes it is probable that a loss will be
incurred and the amount can be reasonably estimated. The Company evaluates, on a quarterly basis, developments in legal matters that could affect the amount of any accrual and developments that would make a loss contingency both probable and reasonably estimable. If a loss contingency is not both probable and estimable, the Company does not establish an accrued liability.

On September 29, 2014, Daisy, Inc., an automotive repair shop in Cape Coral, Florida, filed a putative class action suit against Fiesta's subsidiary, Pollo Operations, Inc. ("Pollo Operations") in the United States District Court for the Middle District of Florida. The suit alleged that Pollo Operations engaged in unlawful activity in violation of the Telephone Consumer Protection Act, § 227 et seq. occurring in December 2010 and January 2011. During the first quarter of 2016, Pollo Operations reached a settlement with the plaintiff which resulted in dismissal of the case and paid all settlement claims.
The Company is also a party to various other litigation matters incidental to the conduct of business. The Company does not believe that the outcome of any of these matters will have a material effect on its consolidated financial statements.
Recent Accounting Pronouncements (Notes)
New Accounting Pronouncements, Policy [Policy Text Block]
Recent Accounting Pronouncements
In May 2014, and in subsequent updates, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the guidance in former Topic 605, Revenue Recognition, and provides for either a full retrospective adoption in which the standard is applied to all of the periods presented or a modified retrospective adoption in which the cumulative effect of initially applying the standard is recognized at the date of initial application. The new standard provides accounting guidance for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers unless the contracts are in the scope of other US GAAP requirements. The guidance also provides a model for the measurement and recognition of gains and losses on the sale of certain non-financial assets, such as property and equipment, including real estate. The Company is currently evaluating the impact of the provisions of Topic 606; however, the Company expects the provisions to primarily impact certain franchise revenues and does not expect the standard to have a material effect on its financial statements. For the Company, the new standard is effective for interim and annual periods beginning after December 15, 2017.
In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessee recognition of lease assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements. For the Company, the new standard is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. A modified retrospective approach is required with an option to use certain practical expedients. The new guidance is required to be applied at the beginning of the earliest comparative period presented. The Company is currently evaluating the impact on its financial statements. Although the impact is not currently estimable, the Company expects to recognize lease assets and lease liabilities for most of the leases it currently accounts for as operating leases.
In March 2016, the FASB issued ASU No. 2016-04, Recognition of Breakage for Certain Prepaid Stored-Value Products (Topic 405-20), which creates an exception under Topic 405-20 to derecognize financial liabilities related to certain prepaid stored-value products using a breakage model consistent with the revenue breakage model in Topic 606. The new guidance will be effective concurrent with Topic 606, which is effective for the Company for interim and annual periods beginning after December 15, 2017. The Company does not expect this standard to have a material effect on its financial statements.
In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), to simplify various aspects of the accounting and presentation of share-based payments, including the income tax effects of awards and forfeiture assumptions. Currently, tax deductions in excess of compensation costs (excess tax benefits) are recorded in equity and tax deduction shortfalls (tax deficiencies), to the extent of previous excess tax benefits, are recorded in equity and then to income tax expense. Under the new guidance, all excess tax benefits and tax deficiencies will be recorded to income tax expense in the income statement, which could create volatility in the Company's income statement. The new guidance will also change the classification of excess tax benefits in the cash flow statement and impact the diluted earnings per share calculation. The guidance will be effective for interim and annual periods beginning after December 15, 2016, and early adoption is permitted. Different components of the guidance require prospective, retrospective and/or modified retrospective adoption. The Company is currently evaluating the impact on its financial statements and it is not currently estimable.
Basis of Presentation Accounting Policies (Policies)
Basis of Consolidation. The unaudited condensed consolidated financial statements presented herein reflect the consolidated financial position, results of operations and cash flows of Fiesta and its wholly-owned subsidiaries. All intercompany transactions have been eliminated in consolidation.
Fiscal Year. The Company uses a 52-53 week fiscal year ending on the Sunday closest to December 31. The fiscal year ended January 3, 2016 contained 53 weeks. The three and six months ended July 3, 2016 and June 28, 2015 each contained thirteen and twenty-six weeks, respectively.
Basis of Presentation. The accompanying unaudited condensed consolidated financial statements for the three and six months ended July 3, 2016 and June 28, 2015 have been prepared without an audit pursuant to the rules and regulations of the Securities and Exchange Commission and do not include certain information and footnotes required by U.S. Generally Accepted Accounting Principles ("GAAP") for complete financial statements. In the opinion of management, all normal and recurring adjustments considered necessary for a fair presentation of such financial statements have been included. The results of operations for the three and six months ended July 3, 2016 and June 28, 2015 are not necessarily indicative of the results to be expected for the full year.
These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended January 3, 2016 included in the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 2016. The January 3, 2016 balance sheet data is derived from those audited financial statements.
Fair Value of Financial Instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. In determining fair value, the accounting standards establish a three level hierarchy for inputs used in measuring fair value as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities; Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities; and Level 3 inputs are unobservable and reflect our own assumptions. The following methods were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate the fair value:
Current Assets and Liabilities. The carrying values reported on the balance sheet of cash, accounts receivable and accounts payable approximate fair value because of the short maturity of those financial instruments.
Revolving Credit Borrowings. The fair value of outstanding revolving credit borrowings under the Company's senior credit facility, which is considered Level 2, is based on current LIBOR rates. At July 3, 2016, the fair value and carrying value of the Company's senior credit facility was approximately $67.9 million.
Long-Lived Assets. The Company reviews its long-lived assets, principally property and equipment, for impairment at the restaurant level. In addition to considering management’s plans, known regulatory or governmental actions and damage due to acts of God (hurricanes, tornadoes, etc.), the Company considers a triggering event to have occurred related to a specific restaurant if the restaurant’s cash flows for the last twelve months are less than a minimum threshold or if consistent levels of cash flows for the remaining lease period are less than the carrying value of the restaurant’s assets. If an indicator of impairment exists for any of its assets, an estimate of undiscounted future cash flows over the life of the primary asset for each restaurant is compared to that long-lived asset’s carrying value. If the carrying value is greater than the undiscounted cash flow, the Company then determines the fair value of the asset and if an asset is determined to be impaired, the loss is measured by the excess of the carrying amount of the asset over its fair value. For closed restaurant locations, the Company reviews the future minimum lease payments and related ancillary costs from the date of the restaurant closure to the end of the remaining lease term and records a lease charge for the lease liabilities to be incurred, net of any estimated sublease recoveries.
Use of Estimates. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements. Estimates also affect the reported amounts of expenses during the reporting periods. Significant items subject to such estimates and assumptions include: accrued occupancy costs, insurance liabilities, evaluation for impairment of goodwill and long-lived assets and lease accounting matters. Actual results could differ from those estimates.
Other Liabilities Other Liabilities (Tables)
Other liabilities, current, consisted of the following:
 
July 3, 2016
 
January 3, 2016
Accrued workers' compensation and general liability claims
$
6,113

 
$
5,540

Sales and property taxes
1,905

 
3,031

Accrued occupancy costs
884

 
980

Other
1,502

 
2,545

 
$
10,404

 
$
12,096

Other liabilities, long-term, consisted of the following:
 
July 3, 2016
 
January 3, 2016
Accrued occupancy costs
$
16,915

 
$
15,349

Deferred compensation
1,687

 
1,665

Accrued workers' compensation and general liability claims
1,792

 
697

Other
4,138

 
3,286

 
$
24,532

 
$
20,997

The following table presents the activity in the closed-store reserve, of which $1.0 million and $1.2 million are included in long-term accrued occupancy costs at July 3, 2016 and January 3, 2016, respectively, with the remainder in other current liabilities:
 
Six Months Ended July 3, 2016
 
Year Ended January 3, 2016
Balance, beginning of period
$
1,832

 
$
1,251

Provisions for restaurant closures

 
554

       Additional lease charges, net of (recoveries)
13

 
258

       Payments, net
(338
)
 
(358
)
Other adjustments
141

 
127

Balance, end of period
$
1,648

 
$
1,832

Stock-based Compensation Stock-based Compensation (Tables)
Schedule of Nonvested Share Activity [Table Text Block]
A summary of all non-vested restricted shares and restricted stock units activity for the six months ended July 3, 2016 was as follows:
 
Non-Vested Shares
 
Restricted Stock Units
 
 
 
Weighted
 
 
 
Weighted
 
 
 
Average
 
 
 
Average
 
 
 
Grant Date
 
 
 
Grant Date
 
Shares
 
Price
 
Units
 
Price
Outstanding at January 3, 2016
257,618

 
$
30.69

 
42,840

 
$
56.46

Granted
97,859

 
34.98

 
39,453

 
35.25

Vested/Released
(115,327
)
 
26.19

 
(239
)
 
50.80

Forfeited
(5,869
)
 
36.79

 
(2,148
)
 
46.82

Outstanding at July 3, 2016
234,281

 
$
34.54

 
79,906

 
$
46.26

Business Segment Information Business Segment (Tables)
Schedule of Segment Reporting Information, by Segment [Table Text Block]
The “Other” column includes corporate related items not allocated to reportable segments and consists primarily of corporate owned property and equipment, miscellaneous prepaid costs, capitalized costs associated with the issuance of indebtedness, corporate cash accounts, a current income tax receivable and advisory fees related to a proposed separation transaction.
Three Months Ended
 
Pollo Tropical
 
Taco Cabana
 
Other
 
Consolidated
July 3, 2016:
 
 
 
 
 
 
 
 
Restaurant sales
 
$
101,879

 
$
78,956

 
$

 
$
180,835

Franchise revenue
 
508

 
189

 

 
697

Cost of sales
 
32,266

 
22,341

 

 
54,607

Restaurant wages and related expenses (1)
 
23,980

 
23,001

 

 
46,981

Restaurant rent expense
 
4,825

 
4,288

 

 
9,113

Other restaurant operating expenses
 
13,701

 
10,562

 

 
24,263

Advertising expense
 
3,685

 
3,321

 

 
7,006

General and administrative expense (2)
 
8,843

 
5,363

 
47

 
14,253

Depreciation and amortization
 
5,428

 
3,197

 

 
8,625

Pre-opening costs
 
1,795

 
221

 

 
2,016

Impairment and other lease charges
 

 
82

 

 
82

Interest expense
 
228

 
307

 

 
535

Income before taxes
 
7,636

 
6,452

 
(47
)
 
14,041

Capital expenditures
 
20,468

 
3,633

 
1,346

 
25,447

June 28, 2015:
 
 
 
 
 
 
 
 
Restaurant sales
 
$
89,569

 
$
81,699

 
$

 
$
171,268

Franchise revenue
 
477

 
155

 

 
632

Cost of sales
 
30,094

 
24,129

 

 
54,223

Restaurant wages and related expenses (1)
 
19,251

 
23,132

 

 
42,383

Restaurant rent expense
 
3,820

 
4,228

 

 
8,048

Other restaurant operating expenses
 
10,893

 
10,469

 

 
21,362

Advertising expense
 
1,904

 
3,240

 

 
5,144

General and administrative expense (2)
 
7,651

 
5,973

 

 
13,624

Depreciation and amortization
 
4,340

 
3,061

 

 
7,401

Pre-opening costs
 
1,144

 
67

 

 
1,211

Impairment and other lease charges
 

 

 

 

Interest expense
 
176

 
238

 

 
414

Income before taxes
 
10,908

 
7,324

 

 
18,232

Capital expenditures
 
17,102

 
2,607

 
934

 
20,643


 
Six Months Ended
 
Pollo Tropical
 
Taco Cabana
 
Other
 
Consolidated
July 3, 2016:
 
 
 
 
 
 
 
 
Restaurant sales
 
$
200,785

 
$
155,989

 
$

 
$
356,774

Franchise revenue
 
1,085

 
350

 

 
1,435

Cost of sales
 
63,870

 
44,787

 

 
108,657

Restaurant wages and related expenses (1)
 
46,876

 
45,157

 

 
92,033

Restaurant rent expense
 
9,469

 
8,565

 

 
18,034

Other restaurant operating expenses
 
26,293

 
20,358

 

 
46,651

Advertising expense
 
7,447

 
6,554

 

 
14,001

General and administrative expense (2)
 
16,528

 
10,825

 
748

 
28,101

Depreciation and amortization
 
10,706

 
6,255

 

 
16,961

Pre-opening costs
 
2,909

 
289

 

 
3,198

Impairment and other lease charges
 

 
94

 

 
94

Interest expense
 
479

 
614

 

 
1,093

Income before taxes
 
17,305

 
13,067

 
(748
)
 
29,624

Capital expenditures
 
34,567

 
5,267

 
2,404

 
42,238

June 28, 2015:
 
 
 
 
 
 
 
 
Restaurant sales
 
$
176,458

 
$
157,868

 
$

 
$
334,326

Franchise revenue
 
1,158

 
291

 

 
1,449

Cost of sales
 
58,633

 
46,713

 

 
105,346

Restaurant wages and related expenses (1)
 
38,005

 
44,968

 

 
82,973

Restaurant rent expense
 
7,469

 
8,586

 

 
16,055

Other restaurant operating expenses
 
20,982

 
20,239

 

 
41,221

Advertising expense
 
4,262

 
6,436

 

 
10,698

General and administrative expense (2)
 
15,448

 
11,940

 

 
27,388

Depreciation and amortization
 
8,079

 
6,169

 

 
14,248

Pre-opening costs
 
2,014

 
148

 

 
2,162

Impairment and other lease charges
 

 
94

 

 
94

Interest expense
 
361

 
491

 

 
852

Income before taxes
 
22,498

 
12,754

 

 
35,252

Capital expenditures
 
32,144

 
5,658

 
2,098

 
39,900

Identifiable Assets:
 
 
 
 
 
 
 
 
July 3, 2016:
 
263,100

 
162,505

 
11,270

 
436,875

January 3, 2016
 
237,065

 
165,549

 
13,031

 
415,645


(1) Includes stock-based compensation expense of $40 and $76 for the three and six months ended July 3, 2016, respectively, and $40 and $107 for the three and six months ended June 28, 2015, respectively.
(2) Includes stock-based compensation expense of $1,218 and $2,193 for the three and six months ended July 3, 2016, respectively, and $1,055 and $1,929
for the three and six months ended June 28, 2015, respectively.
Net Income per Share (Tables)
Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method [Table Text Block]
The computation of basic and diluted net income per share is as follows:
 
 
Three Months Ended
 
Six Months Ended
 
  
July 3, 2016
 
June 28, 2015
 
July 3, 2016
 
June 28, 2015
Basic and diluted net income per share:
  
 
 
 
 
 
 
 
Net income
  
$
8,916

 
$
11,249

 
$
18,811

 
$
21,750

Less: income allocated to participating securities
  
(89
)
 
(142
)
 
(183
)
 
(285
)
Net income available to common stockholders
  
$
8,827

 
$
11,107

 
$
18,628

 
$
21,465

Weighted average common shares, basic
 
26,654,280

 
26,490,673

 
26,629,999

 
26,462,919

Restricted stock units
 
5,989

 
6,985

 
6,146

 
7,211

Weighted average common shares, diluted
  
26,660,269

 
26,497,658

 
26,636,145

 
26,470,130

 
 
 
 
 
 
 
 
 
Basic net income per common share
  
$
0.33

 
$
0.42

 
$
0.70

 
$
0.81

Diluted net income per common share
 
$
0.33

 
$
0.42

 
$
0.70

 
$
0.81

Basis of Presentation Basis of Presentation Narrative (Details) (USD $)
3 Months Ended 6 Months Ended 12 Months Ended 12 Months Ended
Jul. 3, 2016
Jul. 3, 2016
Jun. 28, 2015
Jan. 3, 2016
Jan. 1, 2017
Scenario, Forecast [Member]
Jul. 3, 2016
Entity Operated Units [Member]
Pollo Tropical [Member]
Jul. 3, 2016
Entity Operated Units [Member]
Pollo Tropical [Member]
FLORIDA
Jul. 3, 2016
Entity Operated Units [Member]
Pollo Tropical [Member]
GEORGIA
Jul. 3, 2016
Entity Operated Units [Member]
Pollo Tropical [Member]
TENNESSEE
Jul. 3, 2016
Entity Operated Units [Member]
Pollo Tropical [Member]
TEXAS
Jul. 3, 2016
Entity Operated Units [Member]
Taco Cabana [Member]
Jul. 3, 2016
Entity Operated Units [Member]
Taco Cabana [Member]
TEXAS
Jul. 3, 2016
Entity Operated Units [Member]
Taco Cabana [Member]
OKLAHOMA
Jul. 3, 2016
Franchised Units [Member]
Pollo Tropical [Member]
Jul. 3, 2016
Franchised Units [Member]
Pollo Tropical [Member]
FLORIDA
Jul. 3, 2016
Franchised Units [Member]
Pollo Tropical [Member]
PUERTO RICO
Jul. 3, 2016
Franchised Units [Member]
Pollo Tropical [Member]
PANAMA
Jul. 3, 2016
Franchised Units [Member]
Pollo Tropical [Member]
GUATEMALA
Jul. 3, 2016
Franchised Units [Member]
Pollo Tropical [Member]
TRINIDAD AND TOBAGO
Jul. 3, 2016
Franchised Units [Member]
Pollo Tropical [Member]
VENEZUELA
Jul. 3, 2016
Franchised Units [Member]
Pollo Tropical [Member]
BAHAMAS
Jul. 3, 2016
Franchised Units [Member]
Pollo Tropical [Member]
HONDURAS
Jul. 3, 2016
Franchised Units [Member]
Taco Cabana [Member]
Jul. 3, 2016
Franchised Units [Member]
Taco Cabana [Member]
TEXAS
Jul. 3, 2016
Franchised Units [Member]
Taco Cabana [Member]
NEW MEXICO
Jan. 1, 2017
Maximum [Member]
Scenario, Forecast [Member]
Jan. 1, 2017
Minimum [Member]
Scenario, Forecast [Member]
Entity Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weeks In Fiscal Period
13 
26 
26 
53 
52 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
53 
52 
Number of Restaurants
 
 
 
 
 
172 
122 
13 
33 
164 
163 
37 
17 
 
 
Line of Credit Facility, Amount Outstanding
$ 67,900 
$ 67,900 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basis of Presentation Fair Value Disclosures (Details) (Fair Value, Inputs, Level 2 [Member], USD $)
In Millions, unless otherwise specified
Jul. 3, 2016
Fair Value, Inputs, Level 2 [Member]
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
Debt Instrument, Fair Value Disclosure
$ 67.9 
Long-Term Debt (Details) (USD $)
Jul. 3, 2016
Line of Credit Facility [Line Items]
 
Line of Credit Facility, Amount Outstanding
$ 67,900 
Other Liabilities Other Liabilities Current (Details) (USD $)
In Thousands, unless otherwise specified
Jul. 3, 2016
Jan. 3, 2016
Other current liabilities [Line Items]
 
 
Accrued workers' compensation and general liability claims
$ 6,113 
$ 5,540 
Sales and property taxes
1,905 
3,031 
Accrued occupancy costs
884 
980 
Other
1,502 
2,545 
Other Liabilities
$ 10,404 
$ 12,096 
Other Liabilities Other Liabilities Noncurrent (Details) (USD $)
In Thousands, unless otherwise specified
Jul. 3, 2016
Jan. 3, 2016
Accrued occupancy costs
$ 16,915 
$ 15,349 
Deferred compensation
1,687 
1,665 
Accrued workers' compensation and general liability claims
1,792 
697 
Other
4,138 
3,286 
Other Liabilities, Noncurrent
$ 24,532 
$ 20,997 
Other Liabilities Restructuring Reserve (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended 12 Months Ended
Jul. 3, 2016
Jan. 3, 2016
Restructuring Cost and Reserve [Line Items]
 
 
Balance, beginning of period
$ 1,832 
$ 1,251 
Provisions for restaurant closures
554 
Additional lease charges, net of (recoveries)
13 
258 
Payments, net
(338)
(358)
Other adjustments
141 
127 
Balance, end of period
1,648 
1,832 
Long-Term Liability [Member]
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Balance, end of period
$ 1,000 
$ 1,200 
Stock-based Compensation Stock-based Compensation (Details) (Narrative) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 3, 2016
Jun. 28, 2015
Jul. 3, 2016
Jun. 28, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Share-based compensation expense
$ 1.3 
$ 1.1 
$ 2.3 
$ 2.0 
Nonvested awards, total compensation cost not yet recognized
$ 8.4 
 
$ 8.4 
 
Restricted Stock [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Restricted shares, grants in period, weighted average grant date fair value
 
 
$ 34.98 
 
Restricted shares, grants in period
 
 
97,859 
 
Nonvested awards, total compensation cost not yet recognized, period for recognition
 
 
1 year 9 months 5 days 
 
Restricted Stock [Member] |
Management [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Restricted shares, award vesting period
 
 
4 years 
 
Restricted shares, grants in period, weighted average grant date fair value
 
 
$ 35.25 
$ 62.05 
Restricted shares, grants in period
 
 
50,087 
22,597 
Restricted Stock [Member] |
Executive Officer [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Restricted shares, award vesting period
 
 
 
4 years 
Restricted shares, grants in period, weighted average grant date fair value
 
 
$ 35.25 
$ 65.01 
Restricted shares, grants in period
 
 
33,691 
17,501 
Restricted Stock [Member] |
Director [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Restricted shares, grants in period, weighted average grant date fair value
$ 33.39 
 
 
$ 54.06 
Restricted shares, grants in period
14,081 
 
 
8,698 
Restricted Stock Units (RSUs) [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Restricted shares, grants in period, weighted average grant date fair value
 
 
$ 35.25 
 
Restricted shares, grants in period
 
 
39,453 
 
Nonvested awards, total compensation cost not yet recognized, period for recognition
 
 
2 years 3 months 23 days 
 
Restricted Stock Units (RSUs) [Member] |
Management [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Restricted shares, grants in period, weighted average grant date fair value
$ 35.25 
 
 
$ 62.05 
Restricted shares, grants in period
5,762 
 
 
10,007 
Restricted Stock Units (RSUs) [Member] |
Executive Officer [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Restricted shares, award vesting period
 
 
 
3 years 
Restricted shares, grants in period, weighted average grant date fair value
 
$ 65.01 
 
 
Restricted shares, grants in period
 
 
 
17,501 
Minimum [Member] |
Restricted Stock Units (RSUs) [Member] |
Executive Officer [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Shares to be issued at end of performance period
 
 
 
Maximum [Member] |
Restricted Stock Units (RSUs) [Member] |
Executive Officer [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Shares to be issued at end of performance period
67,382 
35,002 
 
 
Stock-based Compensation Stock-based Compensation (Details) (USD $)
6 Months Ended
Jul. 3, 2016
Restricted Stock [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
Non-vested shares, beginning
257,618 
Non-vested shares weighted average grant date price, beginning
$ 30.69 
Restricted shares, grants in period
97,859 
Restricted shares, grants in period, weighted average grant date fair value
$ 34.98 
Restricted shares, vested in period
(115,327)
Restricted shares, vested in period, weighted average grant date fair value
$ 26.19 
Restricted shares, forfeited in period
(5,869)
Restricted shares, forfeited in period, weighted average grant date fair value
$ 36.79 
Non-vested shares, ending
234,281 
Non-vested shares weighted average grant date price, ending
$ 34.54 
Restricted Stock Units (RSUs) [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
Non-vested shares, beginning
42,840 
Non-vested shares weighted average grant date price, beginning
$ 56.46 
Restricted shares, grants in period
39,453 
Restricted shares, grants in period, weighted average grant date fair value
$ 35.25 
Restricted shares, vested in period
(239)
Restricted shares, vested in period, weighted average grant date fair value
$ 50.80 
Restricted shares, forfeited in period
(2,148)
Restricted shares, forfeited in period, weighted average grant date fair value
$ 46.82 
Non-vested shares, ending
79,906 
Non-vested shares weighted average grant date price, ending
$ 46.26 
Business Segment Information Business Segment Details (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 3, 2016
Jun. 28, 2015
Jul. 3, 2016
Jun. 28, 2015
Jan. 3, 2016
Segment Reporting Information [Line Items]
 
 
 
 
 
Restaurant sales
$ 180,835 
$ 171,268 
$ 356,774 
$ 334,326 
 
Franchise revenue
697 
632 
1,435 
1,449 
 
Cost of sales
54,607 
54,223 
108,657 
105,346 
 
Restaurant wages and related expenses
46,981 1
42,383 1
92,033 1
82,973 1
 
Restaurant rent expense
9,113 
8,048 
18,034 
16,055 
 
Other restaurant operating expenses
24,263 
21,362 
46,651 
41,221 
 
Advertising expense
7,006 
5,144 
14,001 
10,698 
 
General and administrative expense
14,253 2
13,624 2
28,101 2
27,388 2
 
Depreciation and amortization
8,625 
7,401 
16,961 
14,248 
 
Pre-opening costs
2,016 
1,211 
3,198 
2,162